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I'm just going to come out and say it. Flame me if you must. The PS3 should be abandoned. It was lossing them money even before the currency became an issue.

I do not forsee them abandoning the PS brand or gaming though. There's still good money in that. The PS2 and PSP should both continue as should all their PS3/PC games (but also be ported (sorry Sony fans)) to the 360.

But the hardware itself is an albatrous. It, in and of itself, will never earn them money. Due to the current economic realities they should cease production by the end of fiscal if not before. Then bring about a PS4 in late '09 or '10 following a Nintendo-like business model (IE: not selling high-end hardware at a loss). They have at this point sold enough hardware that no 3rd party would or ever will take a loss for making PS3 games so there won't be any negative backlash from them like Sega got.

I know. Makes me sad too.